Auto auctions have been taking place for at least seventy-five years. During that time, technological advances have improved the efficiency and operability of the auto auction. But comparatively little has changed with respect to the layout of the auction arena itself. As auctions have grown, their venues have grown accordingly without otherwise introducing significant changes to their layout. The largest auto auction arena in the U.S. is located in Manheim, Pa.; it has 33 lanes spread out over a length of more than 600 feet.
FIG. 1 illustrates a plan view of a typical prior art auto auction arena. As shown, the typical prior art auto action arena 10 is housed in a walled building 12. Within the walled building 12 is a plurality of auto lanes 14. The auto lanes 14 run parallel to each other and each lane runs straight through the walled building 12 through openings 16 (i.e., doors) in the walls.
Auction bidders stand in bidder areas 16 between the lanes 14. As shown, the bidder areas 16 are bounded on opposite sides by auto lanes 14 and on the adjacent sides by the building walls 12. On one end of the bidding area 16 are auctioneer stands 22. One auctioneer is assigned for each auto lane 14.
In operation, cars 400 to be auctioned enter the building and drive down the auto lanes 14 toward the auctioneer stands 22. When the cars get to the auctioneer stand 22, the auctioneer that lanes auctions off the car, after which the car is driven out of the building so the next car in line can move up and be auctioned. All lanes conduct auctions at the same time.
The traditional prior art floorplan as just described presents problems to bidders on the floor. The arenas must move cars in, conduct bids, sell the cars, then bring in the next car as quickly as possible to minimize operating expenses and maximize profit, often leaving bidders no time to move between an auction in one lane and another auction in another lane. Each lane advances from one car to the next as quickly as each auction is completed, and any given lane may advance faster or slower than the other lanes. Bidders who choose to stay and bid on a car in one lane lose the ability to bid on other cars in other lanes. This disadvantage is particularly acute for solo bidders, who cannot know how many auctions have been completed in other lanes. These bidders must decide on the spot whether to stay with a particular auction or to abandon it for a more favorable one in a distant lane; sometimes, bidders abandon one auction in hopes of bidding on a more desired car in another lane, only to discover it has already been sold.
The traditional layout also creates problems for the consigners who are trying to sell cars through the arena. Certain lanes are seen as more desirable than others because of their relative distance from the main entry doors. Moreover, consigners prefer to represent their cars on-site because they have a better chance of making a sale. Consigners who can interact with the bidders often get a better price. Conversely, consigners on site may choose to authorize a lower price floor for one of their cars due to lack of bids, rather than letting the car go unsold. Bidders are also more interested in groups of cars which are represented by the consigners. When a consigner's cars are spread out over multiple lanes, consigners lose the ability to represent all of their cars and consequently lose money. They may choose to focus their efforts on the more favorable lanes close to the arena exit to the detriment of their other auctions.
The arena itself loses potential profits when bidders and consigners face these problems. Because the house takes a share of the proceeds from every successful auction, it is in the house's best interests to ensure that every potential bidder is involved in as many auctions as they are willing to participate in. However, arenas are constrained by time available to run the auctions. Idle time on the lanes costs the arenas money in operating costs; this is one reason that auctions tend to progress as fast as the house can make them progress. While time and operating expenses will always be a constraint, the traditional auto auction arena floorplan exacerbates these constraints to the detriment of bidders, consigners, and auction houses. Therefore, a heretofore unaddressed need exists in the industry to address the aforementioned deficiencies and inadequacies.